PEMEX Awards First Five Mixed Contracts in New Upstream Drive

PEMEX has awarded five of its planned mixed contracts with private partners, the company said Tuesday, marking a step in its strategy to reverse declining crude and gas production. The contracts are scheduled to be signed on Dec. 19 and involve onshore fields in several key basins across the country.

PEMEX’s Director General Víctor Rodríguez told investors that the awarded contracts will generate signing bonuses totaling about US$49.48 million for the NOC, reflecting the highest percentage of cash flow competitively bid among the initial agreements, according to El Economista. The contracts cover the Tamaulipas-Constituciones, Cuervito, Sini-Caparroso, Agua Fría, and Tupilco Terciario projects, all located in onshore basins such as Tampico-Misantla, Burgos, Veracruz-Puebla and Tabasco.

In each contract, PEMEX will retain a majority participation share, ranging from 46% to 84%, while private partners, all Mexican service and exploration companies, will hold the remaining interest. Winning companies include CESIGSA, Geolis, Consorcio Petrolero 5M del Golfo, and Petrolera Miahuapan. The field sizes and documented reserves vary widely: Tamaulipas-Constituciones holds about 125MMb of heavy oil reserves and 144Bcf of natural gas, while Cuervito has close to 279.9Bcf of gas reserves.

The mixed contract model is part of PEMEX’s broader upstream strategy to attract private investment and technical capacity to conventional onshore production, a priority outlined in the government’s Strategic Plan 2025–2035. Under this framework, PEMEX aims to slow and eventually reverse production declines by partnering with external firms that bring capital and operational capabilities.

Despite this milestone, the initiative has drawn only a limited number of bids. Reuters reported that PEMEX had planned to award 11 mixed contracts before year-end, but so far only five have been secured, and none involved major international oil companies. The firms entering the contracts are primarily local, and expected output additions from the current round, about 70Mb/d, are modest relative to the government’s goal of increasing crude production to 1.8MMb/d by 2030.

Industry analysts have noted that while the mixed contract scheme represents a shift toward private participation, its ability to significantly boost production will depend on broader sector confidence and investment conditions. Moody’s Investors Service has estimated that mixed contracts capable of meaningfully lifting output could take three to five years to develop, highlighting the long lead times associated with exploration and field development under such partnerships.

The first five contract awards underscore these challenges. Some fields, like Tupilco Terciario, have historically low current production, making near-term gains incremental. Others, like Sini-Caparroso, hold larger reserves but will require sustained capital and technical execution to translate into higher output. PEMEX’s significant debt burden and historical difficulties with supplier payments have also weighed on private-sector confidence, industry observers say.

The current awards reflect a pragmatic approach by PEMEX to leverage domestic service firms where global majors have shown limited interest under the existing contract terms. The company and the government view these agreements as necessary initial steps in opening upstream opportunities under Mexico’s revised hydrocarbons law while maintaining state majority control. PEMEX expects to finalize the remaining planned contracts in 2025 and early 2026, which could involve additional fields and partners.